There has been a lot of chatter lately among hockey fans that keeping the team for 5 years is better than losing the team now. For rabid hockey fans such a thought should be anathema. Why?
A little review of history first. In future blogs at “Joyce Clark Unfiltered” a more complete history will be offered. In 2001 the City entered into a series of agreements with Coyotes Center Development
LLC (Mr. Steve Ellman). The City’s clear intent was to build an arena to host the Phoenix Coyotes Hockey team which had been purchased by Mr. Ellman. There was no management fee in this agreement. In 2005 Mr. Ellman sold the team to Mr. Jerry Moyes. There was still no management fee as Mr. Moyes bought the team under the existing agreements with the City of Glendale.
In Spring-Summer 2009 Mr. Moyes wanted the agreements renegotiated with the City to include a management fee of approximately $12 million a year or he would d
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cy. The City declined and Mr. Moyes declared bankruptcy. He tried to convince the City to support the sale of the team to Mr. Jim Balsillie of RIM with relocation of the team to Canada and to accept nominal annual payments from him. The City refused and consequently in May of 2010 the NHL bought the team out of bankruptcy. For the first time the City would be required to pay a management fee and in the case of the NHL, that figure was $25M a year.
eclare bankrupt
cy. The City declined and Mr. Moyes declared bankruptcy. He tried to convince the City to support the sale of the team to Mr. Jim Balsillie of RIM with relocation of the team to Canada and to accept nominal annual payments from him. The City refused and consequently in May of 2010 the NHL bought the team out of bankruptcy. For the first time the City would be required to pay a management fee and in the case of the NHL, that figure was $25M a year.In April and June of 2010 the City entered into Memoranda of Understandings with the
Reinsdorf Group and Anthony LeBlanc of Ice Edge. Neither of these potential deals could
Reinsdorf Group and Anthony LeBlanc of Ice Edge. Neither of these potential deals could
be negotiated to all parties’ satisfaction. Each of these parties was seeking an arena management fee in the $17 million range and each wanted an “opt out” clause of 5 years.
In February to June 2011, the City was ready to finalize a deal with Mr. Matthew Hulsizer of Coyotes Newco LLC. This deal also contained an “opt out” clause of 5 years. This new deal would have required the City to purchase parking rights from Coyotes Newco at a cost of approximately $100 M. It failed only in part due to the Goldwater Institute’s assertion that the City would be in violation of the state gift clause.
In the fall of 2011 through January 31, 2013, the City entered into an MOU and serious negotiations with Mr. Greg Jamison of Hockey Partners LLC. It was a deal that was good for Glendale, the NHL and the team. It kept the team in Glendale for 20 years, the annual management fee was $12M, there was an option to buy the arena and it contained penalty and incentive provisions. It failed because Mr. Jamison could not meet the City deadline for completion.I will offer more about this situation in a future blog at “Joyce Clark Unfiltered.” Lately there has been talk of “mystery buyers” with “deep pockets” from Gallacher to LeBlanc.
Ever since the arena was built I have talked to team owners of various sports. Universally the consensus has been that it takes a minimum of 10 years to build a solid fan base. Their general opinion has been that if anyone offered less than the 10 years then that entity is not serious about staying.Coyotes fans should not be willing to settle for a deal that only keeps the team in Arizona for 5 years knowing that it is not a good deal for the team, the NHL or the City of Glendale. How can a fan emotionally invest in a team knowing that it is destined to leave? Fans should be supportive of a deal that keeps the Coyotes here long-term. After all, in the last 18 months the emotional, physical and financial fan investment in this team has been greater than that of any fan in the NHL. It’s time for surety through permanence for everyone.
